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PGC Digital: 1Up Capital's Maximilian Seeburg on why you need to "know your numbers"

Seeburg discusses different options available to game developers seeking funding

PGC Digital: 1Up Capital's Maximilian Seeburg on why you need to "know your numbers"

Gathering funding for a mobile game is a tricky and daunting task that many developers are faced with throughout their time in the industry

1Up Capital managing partner Maximilian Seeburg joined PGC Digital #7 to discuss some of the different ways you can secure funding for your mobile games.

The first thing Seeburg advocates when seeking investors is that you know your own mindset. In particular, do you want to work with a publisher or follow the route of self-publishing? Deciding this is the first step towards seeking what finance options are right for you.

Investors will traditionally invest in the company and not the game so it is important to make clear what your goals are, such as multiple games, one-offs or to build a company with new IPs. Seeburg mentions that when pitching your strategy to an investor make sure that it makes sense from a company perspective.

One avenue to financing your game Seeburg discussed is venture capital. The benefits of this route are that you will receive access to a sizable amount of cash to work with and advice on how to use it. Venture capitalists effectively buy seats to your studio’s board of directors meaning that they will have an effect on the creative decisions that are made.

Board involvement

Seeburg further suggests that this route is beneficial if you and the investors are aligned in long term goals. For example, if you wish to eventually leave the company once you have reached your goal this option may work. If you want to build the company then you should make sure your goals match that of investors. Seeburg says that with venture capital you must always "strongly consider the involvement of the board" before committing to this route.

Another option Seeburg detailed is the route of growth financing and user acquisition, an area he says is currently growing right now. This method of financing can provide you with an advance on the future cash flow earnings from your mobile game and can circumvent the revenue delay from app marketplaces. Seeburg says that companies like 1UP Capital will provide an advance that is different from a loan as it is not interest related.

"Know your numbers, at the end of the day the games can look gorgeous but when you get a dozen decks as an analyst, associate or partner you look at the numbers, so know your numbers and present them to investors well," he advised.

"It is definitely worth checking out all of the options available to you and choosing the right one for you."

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